Compensation

Kentucky’s state pension plan is in crisis. Only 37.4% of the state’s pension obligations are funded. If past funding patterns continue, KERS-NH will run out of money by 2022. Visit pensions.ky.gov for an overview of the problem; a detailed analysis can be found in the May 2017 Commonwealth of Kentucky Pension Performance and Best Practices Analysis.


In 2016 /2017, Gary Ransdell has committed to phase in a 3% salary increase for all full time employees, funded by a 4.65% tuition increase ($216/semester). This increase will be phased in between July 1, 2016 and July 1, 2017.

Between 2003 and 2014, the average faculty salary at WKU increased from $53,645 to $63,989 (19%, at an average rate of 1.63% per year, compounded). Inflation during this period averaged 2.4% per year for a compounded total of 29.75%.

When adjusted for inflation, average faculty salary has effectively decreased. Additionally, this calculation does not take into account additional issues such as increased social security contributions, health plan contributions (see below), or lack of adjustment for compression.

salary benchmark 2016

Benchmarks:

WKU Salaries and Budget:

Benefits:

The Benefits committee released their preliminary findings on the effects of the health care changes made between 2014 and 2015. However, they do not have data on HSA spending.

The table below shows WKU contributions to the health insurance fund, numbers rounded to the nearest thousand. Overall the cost share percentage for employees has remained about 31.5%, but contributions and expenses far outpace inflation.

Year WKU Contributions Employee premiums Employee out-of-pocket
2015 $14,130,000 $3,169,000 N/A
2014 $13,397,000 $3,523,000 $2,626,000
2013 $11,955,000 $3,297,000 $2,464,000
2012 $11,722,000 $3,216,000 $2,377,000
2011 $11,505,000 $3,233,000 $2,347,000
2010 $9,938,000 $3,184,000 $2,255,000
2009 $9,131,000 $2,305,000 $1,810,000
2008 $8,966,000 $2,024,000
2007 $8,051,000 $2,149,000
2006 $8,982,000 $2,149,000
2005 $8,150,000 $2,018,000
2004 $7,767,000 $1,845,000
2003 $7,306,000 $1,697,000
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